First, let’s talk a little about giving in general!
If you ask a donor to give to your cause then
you need to be able to show that donor that you are using his or her
money wisely!
People give to people not just specifically to
causes! Everyone has a “sphere of influence” a group of people that
they can go to and because those people respect you they will be
willing to help you accomplish your goal in supporting a worthy
charity.
Before you ask someone else to give you
yourself have to give! Giving your time, however valuable this may
be is not the same as giving actual money. While the amount you give
to the nonprofit you support is less relevant, if you serve on the
board of directors just putting a dollar in an envelope just to say
that the entire board of the nonprofit is giving is disingenuous, to
say the least, and (in my opinion) borderline fraudulent.
Having the public trust and a positive
reputation are two intangible traits nonprofits need to have in
great abundance before they can be successful.
A Solid Foundation for Giving: Business Basics
for Nonprofits
The nonprofit arena is in many ways similar to the
for profit arena. Many for profit companies do not succeed when they
start out because they are under capitalized and/or they cannot find
people willing to purchase their products at the prices they establish.
These companies have not established themselves with their target
markets and the demand for their product is nonexistent so the company
is ignored and they fail. Each year in the United States 800,000
businesses fail and only 18 out of 100 businesses make it past the ten
year mark.
You cannot expect people to give to you on an
annual basis if they have never heard of your organization or are
unaware of what you do in the community and why it is so important. As
part of this annual giving plan, your board of directors (with staff
help) needs to have a time of brainstorming so you can identify all your
“target markets” i.e. those people with whom you need to establish a
relationship.
It should be noted, however, that just because you might have a worthy
cause does not always mean it will be easy to find someone willing to
pay you to do that work. However, in this discussion we will assume you
do have supporters.
Annual giving
When a nonprofit has developed giving strategies
built upon sound business principles, then it is ready to build an
effective annual giving program.
An annual giving effort involves events and
fundraising efforts your agency does every year. It may include a
membership drive or a “friends of... ” program. This could also be a
special event or events you might do annually. Also, certain donations
like United Way funds can make up part of the annual giving dollars you
receive for your organization.
Regardless of how you raise your dollars, your organization needs an
annual giving plan and developing an annual giving plan takes time!
Also, with any good plan, you need to organize your thoughts, and write
them down. Be very careful, however, that you just don’t go through the
motions and have a few meetings and think to yourself, “Well, I’m glad
that is over. Now I can get back to work!” What you write out as
your plan is your work. This plan is your road map to your success
and it should outline specific strategies you are going to use in order
to have the money you need for your program. Having an annual giving
plan is a critical part of the overall strategic plan for any
organization.
It’s beensaid: “You need to plan your
work and work your plan!” An annual plan should not be a document that you do one time and
forget about it or never consider revising. Let me say that again: “An
annual plan should not be a document that you do one time and forget
about it or never consider revising.” Why?
Things change and people get tired of the same
type of events over and over.
People become numb reading the same boring
letter asking for money.
People want to see recent results and know
they have been part of the success.
What’s the answer? When one talks about “annual
giving” you need to constantly be mindful of identifying with the people
making the gift! Likewise, you need to understand that everyone in your
community will not be interested in what you do and many may never make
a contribution no matter how important or worthy your cause might be.
Many campaigns fail to
meet their goals because they fall behind, get off track or
people do not do what they plan to do. One way to avoid this trap is to
use the systematic approach developed by
Diversified Nonprofit Services.
Organizations need to be able to be flexible and respond in ways that
appeal to what their donor likes!
Most nonprofits want things in a hurry and hope for
instant success. They are waiting for the arrival of their fantasy
“perfect donor.” This is the person in their mind that asks for nothing,
and expects nothing, but gives them everything! This person does not
exist.
Nonprofit board members or paid staff members
must be willing to make the effort it takes to establish long term
relationships with the individuals they need to make their organization
successful. Surprisingly it seems that many donors are resilient
and forgiving and focus on the true good of the organization and often
forgive an organization’s short coming. Yet this is an exception to the
rule, so many non profits end up only having a marginal amount of
success or impact on the group they are trying to serve because they
ignored the donor in the long run. Here’s a short quiz:
How are you communicating with the people who
are funding your organization?
Do you send out a newsletter?
Do you have an annual report?
Other than the time you send a letter asking
for money, do your donors know you exist?
How did your organization rate? Remember, these
questions are very important ones that MUST be answered by every
nonprofit.
Your board of directors and staff need to be totally honest and look
closely at your strengths and weaknesses at the same time you are
identifying your annual fundraising goals. As a consultant, I am often
amazed when I review annual budgets how often someone will pencil in a
goal for fundraising above last year’s number without having any
specific plan on how to make this increased difference occur. This is a
specific example of why you need to have a plan!
Developing a Donor Database
Next, you need a donor database i.e. a way of keeping up with your
supporters, even if this means only having contact information written
out using note card system. If you expect to have any kind of ongoing
contact you need to have a way of keeping your information in order and
recording the gifts a person makes to your organization. If you need
further help on establishing a donor database please refer our link on
nonprofit software.
One extremely important role of a board member
is helping to establish and foster new and existing relationships with
donors!
Fundraising research has shown that if someone
has already given to a cause that 50% when asked again they will give
again. However, that number jumps to 80% if the donor feels like their
previous contribution was properly acknowledged and appreciated!
Nurturing Donor Relationships
Nurture these relationships, because most of the
philanthropic dollars given in America come from individuals. Say "thank
you" more than once--invite donors to events or to your facility for a
tour. Put them on your mailing list. Board members need to play an
active role in thanking donors. They can do this by sending a
handwritten note to a donor or by giving the donor a phone call letting
them know how much their donation means to the organization and how they
are helping make the difference.
No matter which strategy you choose, keep in mind that people give to
people, and the number one reason people don't give is because no
one asked them!
To recap:
People give to people!
Public trust and a positive reputation are essential to
attracting support.
An annual giving plan must be donor-focused.
Know your donors and communicate your thanks.
Good luck implementing your annual campaign!
For more information on annual campaigns, check the
following resources:
